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ALASKA WORKERS’ COMPENSATION MEDICAL SERVICES REVIEW COMMITTEE MEETING

August 11, 2020

TABLE OF CONTENTS

TAB 1 Agenda Page 4

TAB 2 Meeting Minutes Page 6 Draft Meeting Minutes July 10, 2020 Page 9 Draft Joint Meeting Minutes August 23, 2019

TAB 3 MSRC Member Roster Page 13 TAB 4 Commissioner-Approved MSRC Recommendations for 2020 Fee Schedule Page 15

TAB 5 2021 Fee Schedule Issues For Consideration Page 25 TAB 6 DRAFT 2021 Medical Fee Schedule with Track Changes Page 28

TAB 7 NCCI Analysis Page 104 2020 Fee Schedule Impact (10/2019) Page 108 2020 Medicare Max. Allowable Reimbursements (2/2020) Page 112 NCCI Email explanation of overall impacts

TAB 8 2018 Workers’ Compensation Annual Report Page 116

TAB 9 Alaska WC COVID-19 Activity Report Page 148 TAB 10 COVID-19 Treatment Guidelines Page 150 ODG Viral Pandemic Management Page 154 ACOEM COVID-19 Guidelines Page 156 NIH COVID-19 Treatment Guidelines Panel TAB 11 Formulary Guidelines Information Page 160 NCCI Analysis Page 164 NCOIL Model Law TAB 12 Hospital Profiles Page 169 Profile Data Page 170 Optum Facility Analysis Methodology TAB 13 Workers’ Compensation Board Calendar Page 173 2020 Calendar Page 174 2021 Calendar

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TAB 1

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ALASKA WORKERS’ COMPENSATION MEDICAL SERVICES REVIEW COMMITTEE MEETING

August 11, 2020

ALASKA DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT DIVISION OF WORKERS’ COMPENSATION

AGENDA

August 11, 2020

9:00 am Call to order

• Roll call - establishment of quorum

9:10 am Approval of Agenda

9:15 am Introduction of newly hired Workers’ Compensation Director

9:20 am Review Meeting Packet

9:30 am Reading/Approval of minutes from July 10, 2020 meeting

9:40 am Review of 2021 MSRC Fee Schedule Issues

• Use as guide during meeting; during “Mark Up” Draft Fee Schedule review

9:50 am COVID-19 WC Claims Update

10:00 am Break

10:15 am Public Comment Period

11:15 am Break

11:30 am Review Draft 2021 Medical Fee Schedule w/ Mark Ups

• Reference to Fee Schedule Issues during Step-Thru

12:30 pm Lunch Break

1:30 pm Roll Call

1:35 pm Cont: Review Draft 2021 Medical Fee Schedule w/ Mark Ups

3:00 pm Break

3:15 pm Vote to accept Draft 2021 Medical Fee Schedule

3:30 pm Discuss/Propose MSRC meetings dates for CY2021

4:00 pm Open Discussion

5:00 pm Adjournment

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TAB 2

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Medical Services Review Committee Meeting, July 10, 2020 Page 1 of 3

Workers’ Compensation Medical Services Review Committee

Meeting Minutes July 10, 2020

I. Call to order Acting Director Joseph Knowles, Chair of the Medical Services Review Committee, called the Committee to order at 9:02 am on Friday, July 10, 2020. Due to concerns related to the COVID-19 public health disaster, the meeting was held by telephone and video conference.

II. Roll call Acting Director Knowles conducted a roll call. The following Committee members were present, constituting a quorum: Dr. Mary Ann Foland Jennifer House Susan Kosinski Pam Scott Misty Steed Members Vince Beltrami and Dr. Robert Hall were excused. Member Timothy Kanady was absent.

III. Introduction of New Members and Guests Acting Director Knowles introduced senior staff present, and Carla Gee with Optum.

IV. Approval of Agenda A motion to adopt the agenda was made by member Scott and seconded by member Foland. The agenda was adopted unanimously.

V. Review of Minutes A motion to adopt the June 19, 2020 minutes was made by member Foland and seconded by member Kosinski. The June 19, 2020 minutes were unanimously adopted by the committee.

VI. Fee Schedule Guidelines Development Discussion Acting Chief of Adjudications Ronald Ringel discussed fees for out-of-state providers. Carla Gee reminded everyone that the committee had proposed language at the June 19, 2020 meeting, to clarify that the lower of the either the Alaska GPCI or the GPCI in the state where the treatment occurs, if applicable. Carla will provide updated language at the August 11, 2020 meeting. Acting Director Knowles presented the updated Fee Schedule issues for consideration. The committee discussed access to care. Each member reiterated that from their role within the workers’ compensation system, whether as physician or hospital representative, or as insurer or claim administrator, they do not see access to care as an issue. Break 9:50 am – 10:15 am

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VII. Public Comment Sandy Travis - representing self

• Stated that the Public Notice does not meet requirements under the public meetings act. • Stated she is unable to make public comment because she received the meeting packet

on July 9, 2020 and has not had time to read it all. • Stated that the “New drug program” increases claims due to the side effects and

reactions of the drugs, and that the program favors pharmaceutical companies. • Stated that Administrative Officer Alexis Newman has discriminated against disabled

people. Barbara Williams - representing Injured Workers’ Alliance

• Stated that under Section 4 of the American’s with Disabilities Act, the Division has an obligation to provide accommodations for disabled individuals.

• Stated the Division holds multiple public meetings at the same time to prevent the public from being able to attend.

• Stated SIME doctors should be held to the same fee schedule as other physicians.

VIII. Fee Schedule Guidelines Development Discussion Continued Carla Gee and Nanette Orme from Optum stepped through proposed changes for the 2021 Medical Fee Schedule. The Committee reviewed the proposed language that a provider shall not require a deposit from the patient, in response to their discussion at the June 19, 2020 meeting regarding a particular provider who was requiring a deposit for hearing aids. The committee agreed to the proposed language. The Committee reviewed the proposed language regarding “mixed” drugs, in response to their discussion at the June 19, 2020 meeting. The committee made additional suggestions, and Carla will present the new language at the August 11, 2020 meeting. The Committee reviewed the proposed language regarding transcutaneous electrical nerve stimulation (TENS) Units. Member Foland provided anecdotal information that further demonstrated this was a problem area. Carla presented the TENS Unit language under Colorado’s Fee Schedule, and data surrounding the four billing codes. The committee discussed rental language, and possible ways to cap the cost such as requiring a physician assessment after two months. Carla will present new language at the August 11, 2020 meeting. The Committee reviewed the proposed language regarding hearing aids. Member Steed suggested that additional dispensing codes be added and the committee agreed. Member Steed also noted that she spoke to several audiologists since the last meeting. Unanimously, they had stated that they do not charge for any evaluations within the warranty period, therefore the proposed global billing period would not be an issue for the audiologist community. Member Steed also provided documentation that she had received from an audiologist that she spoke to. Member Kosinski suggested that the committee adopt language similar to Wyoming, which states that a replacement hearing aid requires a written report from

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the physician specifying that a new hearing aid is required. The Committee reviewed hearing aid language from other state Fee Schedules. The committee voiced particular interest in adopting verbiage similar to Wyoming and Washington. Lunch 12:07 pm – 1:10 pm The Committee discussed conversion factors. Due to the COVID-19 pandemic, hospitals and physicians already face hardship and the committee was averse to making large cuts that would further negatively affect them. However, if no cuts were made, Alaska rates would quickly rise as Medicare rates increase annually. The committee agreed minimal reductions were necessary to stay in line with national rates. Carla Gee presented data comparing Alaska rates to the region and country. The Committee agreed upon 5% reductions to surgery, radiology, anesthesia, ambulatory surgery centers, and Durable Medical Equipment. Member Scott motioned to approve the proposed 5% reductions to surgery, radiology, anesthesia, ambulatory surgery centers, and durable medical equipment. Member Foland seconded. The motion passed unanimously. Acting Director Knowles reminded the Committee that the next MSRC meetings were scheduled for August 11, 2020 and the joint meeting of the MSRC and the Workers’ Compensation Board was scheduled for August 28, 2020. These meetings would be held by teleconference and video conference. Motion to adjourn was made by Member Kosinski, and seconded by Member Steed. The motion passed unanimously. Meeting Adjourned 2:07 pm

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MSRC / Alaska Workers’ Compensation Board Special Joint Meeting August 23, 2019 Page 1 of 3

Medical Services Review Committee / Workers’ Compensation Board

Special Joint Meeting Meeting Minutes

August 23, 2019

I. Call to order Workers’ Compensation Director Grey Mitchell called the MSRC and Board to order at 10:01 am on Friday, August 23, 2019, in Anchorage, Alaska.

II. Roll callDirector Mitchell conducted roll call of the Board. The following Board members werepresent, constituting a quorum:

Bradley Austin Randy Beltz Pamela Cline Chuck Collins Bob Doyle Sara Faulkner Bronson Frye Jacob Howdeshell Sarah Lefebvre Justin Mack Donna Phillips Diane Thompson Robert Weel Lake Williams

Director Mitchell noted that members Bob Doyle, Julie Duquette, and Kimberly Zieglerwere excused. Members Nancy Shaw and Rick Traini were absent.

Director Mitchell conducted a roll call of the MSRC. The following Committeemembers were present, constituting a quorum:

Dr. Mary Ann Foland Dr. Robert Hall Jennifer House Timothy Kanady Susan Kosinski Tammi Lindsey Pamla Scott

Members Vince Beltrami and Misty Steed were excused.

III. Agenda ApprovalA motion to approve the agenda was made by member Austin, and seconded bymember Lefebvre. The agenda was approved by unanimous vote.

IV. Approval of MSRC August 9, 2019 Meeting MinutesA motion to adopt the minutes from August 9, 2019 meeting was made by memberFoland and seconded by member Kosinski. Member Kosinski noted that memberTami Lindsey was not present. The motion to approve the minutes as amendedpassed unanimously.

V. Approval of joint Board/MSRC August 10, 2018 Meeting Minutes A motion to adopt the minutes from the August 10, 2018 special joint meeting of the Board and MSRC was made by member Lefebvre and seconded by member Collins. The motion passed unanimously.

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VI. Public Comment Period 10:15am- 11:15am Sandy Travis – representing self

• Alleged that doctors are not following the Alaska Fee Schedule, and are charging Medicare and Medicaid instead.

• Alleged that Alaska is behind the times in regards to medical care and believes doctors should not prescribe opioids.

• Accused the MSRC of making deals with pharmaceutical providers. • Alleged that medical clinics in Alaska are closing because they don’t want to deal

with the fee schedule. Greg Weaver – representing self

• Alleged that the Board is biased towards the employer. Eric McDonald – representing self

• Requests written instruction on how to comply with the medical fee schedule. • Alleges that he has been instructed he must pay portions of the medical bills

associated with his Workers’ Compensation claim. Barbara Williams – representing Injured Workers’ Alliance

• Alleged that the Division does not have staff who are able to answer questions regarding the fee schedule.

• Asked that the Division either host a class or designate a staff member who can answer questions regarding the fee schedule.

Cindy Franklin – representing Dr. John Shannon (written comment)

• Opposes fee schedule recommendations which would restrict payments to Alaska Chiropractic Physicians for injections administered per ancillary methodology.

Sue Sumpter – representing Creekside Surgery Center (written comment)

• Opposes proposed 20% reduction to Ambulatory Surgery Center conversion factor.

VII. MSRC’s Presentation of Recommendations to Board The MSRC presented its recommendation to the Board. Director Mitchell provided the history of Alaska Workers’ Compensation medical costs and the Alaska Medical Fee Schedule. He explained that despite the MSRC’s efforts in recent years, Alaska’s medical costs continue to rank among the highest in the nation. Director Mitchell explained the reasoning behind the recommended conversion factor reductions for surgery, radiology, pathology and laboratory, anesthesiology, ambulatory surgery center, and clinical lab.

VIII. Reed Group Presentation The members of Reed Group introduced themselves and presented on the American College of Occupational and Environmental Medicine Practice Guidelines, and the

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State of California’s experience adopting evidence-based treatment guidelines. The MSRC and Board members discussed the pros and cons of treatment based guidelines. Lunch Break 12:45pm – 2:05pm

IX. MSRC’s Presentation of Recommendations to Board Cont. The MSRC continued to present the recommendation to the Board. The members discussed the new language regarding off-label use of medical services. MSRC Member Foland made a motion to amend the section, by adding additional language about the appropriateness of the medical service. The motion was seconded by MSRC member House. The motion passed unanimously. Member Austin moved to approve the proposed 2020 Medical Fee Schedule, as amended. Member Lefebvre seconded the motion. The motion passed unanimously.

X. Proposed Regulation Changes Amend 8 AAC 45.083(a), relating to fees for medical treatment and services. Member Lefebvre moved to approve the amendment of 8 AAC 45.083(a). Member Austin seconded the motion. The motion passed unanimously. A motion to adjourn was made by member Lefebvre, and seconded by member Austin. The motion passed unanimously. Meeting Adjourned 4:10pm

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TAB 3

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Alaska Workers’ Compensation Medical Services Review Committee, AS 23.30.095(j)

The commissioner shall appoint a medical services review committee to assist and advise the department and the board in matters involving the appropriateness, necessity, and cost of medical and related services provided under this chapter. The medical services review committee shall consist of nine members to be appointed by the commissioner as follows:

(1) one member who is a member of the Alaska State Medical Association; (2) one member who is a member of the Alaska Chiropractic Society; (3) one member who is a member of the Alaska State Hospital and Nursing Home Association; (4) one member who is a health care provider, as defined in AS 09.55.560; (5) four public members who are not within the definition of "health care provider" in AS 09.55.560; and (6) one member who is the designee of the commissioner and who shall serve as chair.

Committee Membership as of May 20, 2020

Seat Last Name First Name Affiliation Chairperson Mitchell Grey Director, Division of

Workers’ Compensation Alaska State Medical Association

Hall, MD Robert J. Orthopedic Physicians Anchorage, Inc.

Alaska Chiropractic Society

Kanady, DC Timothy Kanady Chiropractic Center

Alaska State Hospital & Nursing Home Association

House Jennifer Foundation Health

Medical Care Provider Foland, MD Mary Ann Primary Care Associates

Lay Member Steed Misty PACBLU

Lay Member Scott Pam Northern Adjusters, Inc.

Lay Member Beltrami Vince AFL-CIO

Lay Member Kosinski Susan ARECA Insurance Exchange

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TAB 4

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Department of Labor and Workforce Development

Office of the Commissioner

PO Box 111149 Juneau, Alaska 99811

Main: 907.465.2700

August 20, 2019

Alaska Workers’ Compensation Board P.O. Box 115512 Juneau, AK 99811-5512

Dear Alaska Workers’ Compensation Board,

As required by AS 23.30.097(r), I formally approve the conversion factor adjustment recommendations contained in the Medical Services Review Committee (MSRC) Report dated August 16, 2019. I believe that the report recommendations will maintain employee access to medical care provided through workers’ compensation insurance, while improving workers’ compensation medical cost stability and predictability to employers operating in Alaska. Thank you for taking up this important matter at your August 23, 2019, joint Board meeting with the MSRC.

Sincerely,

Dr. Tamika L. Ledbetter Commissioner

cc: Director Grey Mitchell

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TAB 5

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ALASKA WORKERS’ COMPENSATION MEDICAL SERVICES REVIEW COMMITTEE

ALASKA DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT

DIVISION OF WORKERS’ COMPENSATION

Updated: 5 Aug 2020

2021 Fee Schedule Issues for Consideration

• Review Draft Fee Schedule with mark-ups to account for CMS adjustments. o CMS changes to E&M category; changes to the Evaluation and Management

section of codes are discussed in more detail in the Evaluation and Management section of this fee schedule.

o Expand telemedicine descriptions and clarify any limitations; suggest telehealth verbiage to cover and reimburse vs. remain silent

o Clarify scenario in which relative weight is non-existent, but a payment rate exists in Addendum B (OPPS file) – e.g. for CPT® 90375, pay at ASP value/multiplier; suggest verbiage for procedures without a relative weight in Addendum B shall use a payment rate where available with the conversion factor 221.79 multiplier of 2.08 for ASCs and 2.75 for outpatient facilities

o Critical Access Hospitals – currently agree to retain current fee schedule which allows lowest of 100% of billed charge, charge to general public, or negotiated price between provider and employer for implant reimbursement vs. limited based on invoice cost

• Confirm suggested verbiage in fee schedule • TENS units and commitment to auto deliveries/lifetime resupply default; suggest

verbiage for annual renewal assessments and rent for two months w/ re-evaluation to determine continued rental or purchase; electrodes supplies “2 months, then as needed” @ invoice plus 2%0

• Concerns expressed that employees are asked to prepay/make deposits/finance treatment & services; suggest verbiage re; an employee shall not be required to pay a fee or charge for medical treatment or service provided under this chapter including prepayment, deposit, or balance billing for services (Alaska Statute 23.90.097(f))

• Review conversion factors/multiplier category (compare to national & regional charges) – previous focus area for 10 July’s meeting (w/ Idaho, Montana, & Wyoming)

o Optum’s excel files reflect culmination of MSRC inputs o 10 July Committee agreed upon reductions to Surgery, Radiology, Anesthesia,

Ambulatory Surgery Center and Durable Medical Equipment o VERIFY PATHOLOGY & LAB/CLINICAL LAB both @ ZERO/no change

• Work Hardening – acceptable for individual treatment in a group setting? o Confirm suggested verbiage in fee schedule if necessary

• Application of Alaska’s GPCIs vs. other state’s when calculating total RVU o Suggest verbiage of services by out-of-state providers shall be reimbursed at

the lower of the Alaska Workers' Compensation Medical Fee Schedule or the workers compensation fee schedule of the state where the service is rendered

• Reimbursement for compound ”Pre-Mix” of Over the Counter drugs – high billing as a prescription; suggest verbiage that compounded and mixed drugs shall be limited to medical necessity and must be FDA-approved combinations, as well as reimbursed at lowest generic NDC for each/comparable to prepaid or private plans 025

• Recurring review for any access challenges to medical care for injured workers o None noted thus far by MSRC members o MSRC members will continue to solicit feedback from their various and diverse

colleagues • Inpatient Hospital conversion factors – evaluate methodology and consider

conversion factor adjustments/consolidation; currently believed to competitive o Committee desires to compare to regional charges when data available

• Adoption of evidence-based treatment guidelines and/or evidence based drug formulary; awaiting drug formulary work group’s results/recommendations

• Evaluate any available data related to 2020’s adjustment: (Awaiting relevant 2019 data) o Impact on utilization associated with work hardening and functional capacity

exam increases; o Impact of hearing aids/parts limitation of mfr invoice + 30% for fitting and

dispensing (HCPCS V5011& V5160) and “gap-fill” relative values; o Impact of scope of practice and off label use limitations

• Consolidation toward a single conversion factor; retained for possible future MSRC consideration

• Other Issues

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TAB 6

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Commented [ONE1]: Effective date will be January 1, 2021

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STATE OF ALASKA DISCLAIMER This document establishes professional medical fee reimbursement amounts for covered services rendered to injured employees in the State of Alaska and provides general guidelines for the appropriate coding and administration of workers’ medical claims. Generally, the reimbursement guidelines are in accordance with, and recommended adherence to, the commercial guidelines established by the AMA according to CPT guidelines. However, certain exceptions to these general rules are proscribed in this document. Providers and payers are instructed to adhere to any and all special rules that follow.

NOTICE The Official Alaska Workers’ Compensation Medical Fee Schedule is designed to be an accurate and authoritative source of information about medical coding and reimbursement. Every reasonable effort has been made to verify its accuracy, and all information is believed reliable at the time of publication. Absolute accuracy, however, cannot be guaranteed.

This publication is made available with the understanding that the publisher is not engaged in rendering legal and other services that require a professional license.

QUESTIONS ABOUT WORKERS’ COMPENSATION Questions regarding the rules, eligibility, or billing process should be addressed to the State of Alaska Workers’ Compensation Division.

AMERICAN MEDICAL ASSOCIATION NOTICE CPT © 2019 2020 American Medical Association. All rights reserved.

Fee schedules, relative value units, conversion factors and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein.

CPT is a registered trademark of the American Medical Association.

AMERICAN SOCIETY OF ANESTHESIOLOGISTS NOTICE Relative Value Guide © 2019 2020 American Society of Anesthesiologists. All Rights Reserved.

RVG is a relative value study and not a fee schedule. It is intended only as a guide. ASA does not directly or indirectly practice medicine or dispense medical services. ASA assumes no liability for data contained or not contained herein.

Relative Value Guide is a registered trademark of the American Society of Anesthesiologists.

COPYRIGHT Copyright 2019 2020 State of Alaska, Department of Labor, Division of Workers’ Compensation

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All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or storage in a database or retrieval system, without the prior written permission of the publisher.

Made in the USA

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Introduction

The Alaska Division of Workers’ Compensation (ADWC) is pleased to announce the implementation of the Official Alaska Workers’ Compensation Medical Fee Schedule, which provides guidelines and the methodology for calculating rates for provider and non-provider services.

Fees and charges for medical services are subject to Alaska Statute 23.30.097(a).

Insurance carriers, self-insured employers, bill review organizations, and other payer organizations shall use these guidelines for approving and paying medical charges of physicians and surgeons and other health care providers for services rendered under the Alaska Workers’ Compensation Act. In the event of a discrepancy or conflict between the Alaska Workers’ Compensation Act (the Act) and these guidelines, the Act governs.

An employee shall not be required to pay a fee or charge for medical treatment or service provided under this chapter including prepayment, deposit, or balance billing for services (Alaska Statute 23.90.097(f)).

For medical treatment or services provided by a physician, providers and payers shall follow the Centers for Medicare and Medicaid Services (CMS) and American Medical Association (AMA) billing and coding rules, including the use of modifiers. If there is a billing rule discrepancy between CMS’s National Correct Coding Initiative edits and the AMA’s CPT® Assistant, the CPT Assistant guidance governs.

Reimbursement is based upon the CMS relative value units found in the Resource-Based Relative Value Scale (RBRVS) and other CMS data (e.g., lab, ambulatory surgical centers, inpatient, etc.). The relative value units and Alaska specific conversion factors represent the maximum level of medical and surgical reimbursement for the treatment of employment related injuries and/or illnesses that the Alaska Workers’ Compensation Board deems to be reasonable and necessary. Providers should bill their normal charges for services.

The maximum allowable reimbursement (MAR) is the maximum allowed amount for a procedure established by these rules, or the provider’s usual and customary or billed charge, whichever is less, and except as otherwise specified. The following rules apply for reimbursement of fees for medical services:

• 100 percent of the MAR for medical services performed by physicians, hospitals, outpatient clinics, and ambulatory surgical centers

• 85 percent of the MAR for medical services performed by “other providers” (i.e., other than physicians, hospitals, outpatient clinics, or ambulatory surgical centers)

The MAR for medical services that do not have valid Current Procedural Terminology (CPT®) or Healthcare Common Procedure Coding System (HCPCS) codes, a currently assigned CMS relative value, or an established conversion factor is the lowest of:

• 85 percent of billed charges,

• The charge for the treatment or service when provided to the general public, or

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• The charge for the treatment or service negotiated by the provider and the employer

SCOPE OF PRACTICE LIMITS Fees for services performed outside a licensed medical provider’s scope of practice as defined by Alaska’s professional licensing laws and associated regulatory boards will not be reimbursable.

ORGANIZATION OF THE FEE SCHEDULE The Official Alaska Workers’ Compensation Medical Fee Schedule is comprised of the following sections and subsections:

• Introduction

• General Information and Guidelines

• Evaluation and Management

• Anesthesia

• Surgery

• Radiology

• Pathology and Laboratory

• Medicine

– Physical Medicine

• Category II

• Category III

• HCPCS Level II

• Outpatient Facility

• Inpatient Hospital

Each of these sections includes pertinent general guidelines. The schedule is divided into these sections for structural purposes only. Providers are to use the sections applicable to the procedures they perform or the services they render. Services should be reported using CPT codes and HCPCS Level II codes.

Proposed 2021 changes to the Evaluation and Management (E/M) section of codes are discussed in more detail in the Evaluation and Management section of this fee schedule.

Familiarity with the Introduction and General Information and Guidelines sections as well as general guidelines within each subsequent section is necessary for all who use the schedule. It is extremely important that these be read before the schedule is used.

PROVIDER SCHEDULE The amounts allowed in the Provider Schedule represent the physician portion of a service or procedure and are to be used by physicians or other certified or licensed providers that do not meet the definition of an outpatient facility.

Some surgical, radiology, laboratory, and medicine services and procedures can be divided into two components—the professional and the technical. A professional service is one that must be rendered by a physician or other certified or

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licensed provider as defined by the State of Alaska working within the scope of their licensure. The total, professional component (modifier 26) and technical component (modifier TC) are included in the Provider Schedule as contained in the Resource-Based Relative Value Scale (RBRVS).

Note: If a physician has performed both the professional and the technical component of a procedure (both the reading and interpretation of the service, which includes a report, and the technical portion of the procedure), then that physician is entitled to the total value of the procedure. When billing for the total service only, the procedure code should be billed with no modifier. When billing for the professional component only, modifier 26 should be appended. When billing for the technical component only, modifier TC should be appended.

The provider schedule contains facility and non-facility designations dependent upon the place where the service was rendered. Many services can be provided in either a non-facility or facility setting, and different values will be listed in the respective columns. The facility total fees are used for physicians’ services furnished in a hospital, skilled nursing facility (SNF), or ambulatory surgery center (ASC). The non-facility total fees are used for services performed in a practitioner’s office, patient’s home, or other non-hospital settings such as a residential care facility. For these services, the practitioner typically bears the cost of resources, such as labor, medical supplies, and medical equipment associated with the practitioner’s service. Where the fee is the same in both columns, the service is usually provided exclusively in a facility setting or exclusively in a non-facility setting, per CMS guidelines. Those same guidelines apply to workers’ compensation.

[H3] Services by Out-of-State Providers Services by out-of-state providers shall be reimbursed at the lower of the [ITAL] Alaska Workers' Compensation Medical Fee Schedule [END ITAL] or the workers compensation fee schedule of the state where the service is rendered. See Alaska Statute 23.30.097(k).

DRUGS AND PHARMACEUTICALS Drugs and pharmaceuticals are considered an integral portion of the comprehensive surgical outpatient fee allowance. This category includes drugs administered immediately prior to or during an outpatient facility procedure and administered in the recovery room or other designated area of the outpatient facility.

The maximum allowable reimbursement for prescription drugs is as follows:

1. Brand name drugs shall be reimbursed at the manufacturer’s average wholesale price plus a $5 dispensing fee;

2. Generic drugs shall be reimbursed at the manufacturer’s average wholesale price plus a $10 dispensing fee;

3. Reimbursement for compounded drugs shall be limited to medical necessity and reimbursed at the manufacturer’s average wholesale price for each drug included in the compound, listed separately by National Drug Code, plus a single $10 compounding fee. 3. Compounded and mixed drugs shall be limited to medical necessity and must be FDA-approved combinations. Reimbursement for compounded or mixed drugs will be: [BULLETED LIST] n Comparable to prepaid or private healthcare plans in the community n At the lowest generic NDC for each specific or over the counter drug

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HCPCS LEVEL II

Durable Medical Equipment The sale, lease, or rental of durable medical equipment for use in a patient’s home is not included in the provider’s fee or the comprehensive surgical outpatient facility fee allowance.

HCPCS services are reported using the appropriate HCPCS codes as identified in the HCPCS Level II section. Examples include:

• Surgical boot for a postoperative podiatry patient

• Crutches for a patient with a fractured tibia

Ambulance Services Ambulance services are reported using HCPCS Level II codes. Guidelines for ambulance services are separate from other services provided within the boundaries of the State of Alaska. See the HCPCS section for more information.

OUTPATIENT FACILITY The Outpatient Facility section represents services performed in an outpatient facility and billed utilizing the 837i format or UB04 (CMS 1450) claim form. This includes, but is not limited to, ambulatory surgical centers (ASC), hospitals, and freestanding clinics within hospital property. Only the types of facilities described above will be reimbursed using outpatient facility fees. Only those charges that apply to the facility services—not the professional—are included in the Outpatient Facility section.

INPATIENT HOSPITAL The Inpatient Hospital section represents services performed in an inpatient setting and billed on a UB-04 (CMS 1450) or 837i electronic claim form. Base rates and amounts to be applied to the Medicare Severity Diagnosis Related Groups (MS-DRG) are explained in more detail in the Inpatient Hospital section.

DEFINITIONS Act — the Alaska Workers’ Compensation Act; Alaska Statutes, Title 23, Chapter 30.

Bill — a request submitted by a provider to an insurer for payment of health care services provided in connection with a covered injury or illness.

Bill adjustment — a reduction of a fee on a provider’s bill.

Board — the Alaska Workers’ Compensation Board.

Case — a covered injury or illness occurring on a specific date and identified by the worker’s name and date of injury or illness.

Consultation — a service provided by a physician whose opinion or advice regarding evaluation and/or management of a specific problem is requested by another physician or other appropriate source.

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Covered injury — accidental injury, an occupational disease or infection, or death arising out of and in the course of employment or which unavoidably results from an accidental injury. Injury includes one that is caused by the willful act of a third person directed against an employee because of the employment. Injury further includes breakage or damage to eyeglasses, hearing aids, dentures, or any prosthetic devices which function as part of the body. Injury does not include mental injury caused by stress unless it is established that the work stress was extraordinary and unusual in comparison to pressures and tensions experienced by individuals in a comparable work environment, or the work stress was the predominant cause of the mental injury. A mental injury is not considered to arise out of and in the course of employment if it results from a disciplinary action, work evaluation, job transfer, layoff, demotion, termination, or similar action taken in good faith by the employer.

Critical care — care rendered in a medical emergency that requires the constant attention of the provider, such as cardiac arrest, shock, bleeding, respiratory failure, and postoperative complications, and is usually provided in a critical care unit or an emergency care department.

Day — a continuous 24-hour period.

Diagnostic procedure — a service that helps determine the nature and causes of a disease or injury.

Drugs — a controlled substance as defined by law.

Durable medical equipment (DME) — specialized equipment that is designed to stand repeated use, is appropriate for home use, and is used solely for medical purposes.

Employer — the state or its political subdivision or a person or entity employing one or more persons in connection with a business or industry carried on within the state.

Expendable medical supply — a disposable article that is needed in quantity on a daily or monthly basis.

Follow-up care — care related to recovery from a specific procedure that is considered part of the procedure’s maximum allowable fee, but does not include care for complications.

Follow-up days — the days of care following a surgical procedure that are included in the procedure’s maximum allowable fee, but does not include care for complications. Follow-up days for Alaska include the day of surgery through termination of the postoperative period.

Incidental surgery — a surgery performed through the same incision, on the same day and by the same physician, that does not increase the difficulty or follow-up of the main procedure, or is not related to the diagnosis (e.g., appendectomy during hernia surgery).

Independent procedure — a procedure that may be carried out by itself, completely separate and apart from the total service that usually accompanies it.

Insurer — an entity authorized to insure under Alaska Statute 23.30.030 and includes self-insured employers.

Maximum allowable reimbursement (MAR) — the maximum amount for a procedure established by these rules, or the provider’s usual and customary or billed charge, whichever is less, and except as otherwise specified.

Medical record — an electronic or paper record in which the medical service provider records the subjective and objective findings, diagnosis, treatment rendered, treatment plan, and return to work status and/or goals and improvement rating as applicable.

Medical supply — either a piece of durable medical equipment or an expendable medical supply.

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Modifier — a two-digit number used in conjunction with the procedure code to describe any unusual circumstances arising in the treatment of an injured or ill employee.

Operative report — the provider's written or dictated description of the surgery and includes all of the following:

• Preoperative diagnosis

• Postoperative diagnosis

• A step-by-step description of the surgery

• Identification of problems that occurred during surgery

• Condition of the patient when leaving the operating room, the provider's office, or the health care organization.

Optometrist — an individual licensed to practice optometry.

Orthotic equipment — orthopedic apparatus designed to support, align, prevent or correct deformities, or improve the function of a moveable body part.

Orthotist — a person skilled and certified in the construction and application of orthotic equipment.

Outpatient service — services provided to patients who do not require hospitalization as inpatients. This includes outpatient ambulatory services, hospital-based emergency room services, or outpatient ancillary services that are based on the hospital premises. Refer to the Inpatient Hospital section of this fee schedule for reimbursement of hospital services.

Payer — the employer/insurer or self-insured employer, or third-party administrator (TPA) who pays the provider billings.

Pharmacy — the place where the science, art, and practice of preparing, preserving, compounding, dispensing, and giving appropriate instruction in the use of drugs is practiced.

Physician — under AS 23.30.395(32) and Thoeni v. Consumer Electronic Services, 151 P.3d 1249, 1258 (Alaska 2007), “physician” includes doctors of medicine, surgeons, chiropractors, osteopaths, dentists, optometrists, and psychologists.

Primary procedure — the therapeutic procedure most closely related to the principal diagnosis and, for billing purposes, the highest valued procedure.

Procedure — a unit of health service.

Procedure code — a five-digit numerical or alpha-numerical sequence that identifies the service performed and billed.

Properly submitted bill — a request by a provider for payment of health care services submitted to an insurer on the appropriate forms, with appropriate documentation, and within the time frame established in Alaska Statute 23.30.097.

Prosthetic devices — include, but are not limited to, eye glasses, hearing aids, dentures, and such other devices and appliances, and the repair or replacement of the devices necessitated by ordinary wear and arising out of an injury.

Prosthesis — an artificial substitute for a missing body part.

Prosthetist — a person skilled and certified in the construction and application of a prosthesis.

Provider — any person or facility as defined in 8 AAC 45.900(a)(15) and licensed under AS 08 to furnish medical or dental services, and includes an out-of-state person or facility that meets the requirements of 8 AAC 45.900(a)(15) and is otherwise qualified to be licensed under AS 08.

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Second opinion — when a physician consultation is requested or required for the purpose of substantiating the necessity or appropriateness of a previously recommended medical treatment or surgical opinion. A physician providing a second opinion shall provide a written opinion of the findings.

Secondary procedure — a surgical procedure performed during the same operative session as the primary and, for billing purposes, is valued less than the first billed procedure.

Special report — a report requested by the payer to explain or substantiate a service or clarify a diagnosis or treatment plan.

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General Information and Guidelines

This section contains information that applies to all providers’ billing independently, regardless of site of service. The guidelines listed herein apply only to providers’ services, evaluation and management, anesthesia, surgery, radiology, pathology and laboratory, medicine, and durable medical equipment.

Insurers and payers are required to use the Official Alaska Workers’ Compensation Medical Fee Schedule for payment of workers’ compensation claims.

BILLING AND PAYMENT GUIDELINES

Fees for Medical Treatment The fee may not exceed the physician’s actual fee or the maximum allowable reimbursement (MAR), whichever is lower. The MAR for physician services except anesthesia is calculated using the Resourced-Based Relative Value Scale (RBRVS) relative value units (RVU) produced by the Centers for Medicare and Medicaid Services (CMS) and the Geographic Practice Cost Index (GPCI) for Alaska based on the following formula:

(Work RVUs x Work GPCI) + (Practice Expense RVUs x Practice Expense GPCI) + (Malpractice RVUs x Malpractice GPCI) = Total RVU

The Alaska MAR payment is determined by multiplying the total RVU by the applicable Alaska conversion factor, which is rounded to two decimals after the conversion factor is applied.

Example data for CPT code 10021 with the Alaska GPCI using the non-facility RVUs:

RVUS GPCI SUBTOTAL

Work RVU x Work GPCI 1.03 1.500 1.545

Practice Expense RVU x Practice Expense GPCI

1.611.64

1.1171.118

1.798371.83352

Malpractice RVU x Malpractice GPCI 0.140.13

0.7080.661

0.099120.08593

Total RVU 3.442493.46445

Data for the purpose of example only

Calculation using example data:

1.03 x 1.500 = 1.545

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+ 1.61 x 1.117 = 1.798371.64 x 1.118 = 1.83352

+ 0.14 x 0.708 = 0.099120.13 x 1.661 = 0.08593

= 3.442493.46445

3.442493.46445 x $132.00125.00 (CF) = 454.40868457.3074433.0563

Payment is rounded to $454.41457.31433.06

The Alaska MAR for anesthesia is calculated as explained in the Anesthesia section. The Alaska MAR for laboratory, durable medical equipment (DME), drugs, and facility services is calculated separately, see the appropriate sections for more information.

Services by out-of-state providers shall be reimbursed at the lower of the Alaska Workers' Compensation

Medical Fee Schedule or the workers compensation fee schedule of the state where the service is ren-

dered. See Alaska Statute 23.30.097(k).

The provider schedule contains facility and non-facility designations dependent upon the place where the service was rendered. Many services can be provided in either a non-facility or facility setting, and different values will be listed in the respective columns. The facility total fees are used for physicians’ services furnished in a hospital, skilled nursing facility (SNF), or ambulatory surgery center (ASC). The non-facility total fees are used for services performed in a practitioner’s office, patient’s home, or other non-hospital settings such as a residential care facility. For these services, the practitioner typically bears the cost of resources, such as labor, medical supplies, and medical equipment associated with the practitioner’s service. Where the fee is the same in both columns, the service is usually provided exclusively in a facility setting or exclusively in a non-facility setting, per CMS guidelines. Those same guidelines apply to workers’ compensation.

The conversion factors are listed here with their applicable Current Procedural Terminology (CPT®) code ranges.

MEDICAL SERVICE CPT CODE RANGE CONVERSION FACTOR

Surgery 10004–69990 $132.00125.00

Radiology 70010–79999 $141.00134.00

Pathology and Lab 80047–89398 $122.00

Medicine (excluding anesthesia)

90281–99082 and 99151–99199 and 99500–99607

$80.00

Evaluation and Management

99091, 9920199202–99499

$80.00

Anesthesia 00100–01999 and 99100–99140

$110.00105.00

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An employer or group of employers may negotiate and establish a list of preferred providers for the treatment of its employees under the Act; however, the employees’ right to choose their own attending physician is not impaired.

All providers may report and be reimbursed for codes 97014 and 97810–97814.

An employee may not be required to pay a fee or charge for medical treatment or service. For more information, refer to AS 23.30.097(f).

RBRVS Status Codes The Centers for Medicare and Medicaid Services (CMS) RBRVS Status Codes are listed below. The CMS guidelines apply except where superseded by Alaska guidelines.

STATUS CODE

THE CENTERS FOR MEDICARE AND MEDICAID

SERVICES (CMS) DEFINITION

OFFICIAL ALASKA WORKERS’ COMPENSATION

MEDICAL FEE SCHEDULE GUIDELINE

A Active Code. These codes are paid separately under the physician fee schedule, if covered. There will be RVUs for codes with this status.

The maximum fee for this service is calculated as de-scribed in Fees for Medical Treatment.

B Bundled Code. Payment for covered services are always bundled into payment for other services not specified. If RVUs are shown, they are not used for Medicare pay-ment. If these services are covered, payment for them is subsumed by the pay-ment for the services to which they are incident.

No separate payment is made for these services even if an RVU is listed.

C Contractors price the code. Contractors will establish RVUs and payment amounts for these services, generally on an individual case basis following review of docu-mentation such as an oper-ative report.

The service may be a cov-ered service of the Official Alaska Workers’ Compensa-tion Medical Fee Schedule. The maximum fee for this service is calculated as de-scribed in Fees for Medical Treatment or negotiated between the payer and provider.

D Deleted Codes. These codes are deleted effective with the beginning of the appli-cable year.

Not in current RBRVS. Not payable under the Official Alaska Workers' Compensa-tion Medical Fee Schedule.

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E Excluded from Physician Fee Schedule by regulation. These codes are for items and/or services that CMS chose to exclude from the fee schedule payment by regulation. No RVUs are shown, and no payment may be made under the fee schedule for these codes.


F Deleted/Discontinued Codes. (Code not subject to a 90 day grace period).


G Not valid for Medicare pur-poses. Medicare uses an-other code for reporting of, and payment for, these services. (Code subject to a 90 day grace period.)


H Deleted Modifier. This code had an associated TC and/or 26 modifier in the previous year. For the current year, the TC or 26 component shown for the code has been deleted, and the de-leted component is shown with a status code of “H.”

Not in current RBRVS. Not payable with modifiers TC and/or 26 under the Official Alaska Workers' Compensa-tion Medical Fee Schedule.

I Not valid for Medicare pur-poses. Medicare uses an-other code for reporting of, and payment for, these services. (Code NOT subject to a 90 day grace period.)


J Anesthesia Services. There are no RVUs and no pay-ment amounts for these codes. The intent of this value is to facilitate the identification of anesthesia services.

Alaska recognizes the anes-thesia base units in the Rela-tive Value Guide® published by the American Society of Anesthesiologists. See the Relative Value Guide or Anesthesia Section.

M Measurement Codes. Used for reporting purposes only.

These codes are supple-mental to other covered services and for informa-tional purposes only.

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N Non-covered Services. These services are not cov-ered by Medicare.


P Bundled/Excluded Codes. There are no RVUs and no payment amounts for these services. No separate pay-ment should be made for them under the fee sched-ule.

• If the item or service is covered as incident to a physician service and is provided on the same day as a physician service, payment for it is bundled into the payment for the physician service to which it is incident. (An example is an elastic bandage fur-nished by a physician in-cident to physician ser-vice.)

• If the item or service is covered as other than in-cident to a physician ser-vice, it is excluded from the fee schedule (i.e., co-lostomy supplies) and should be paid under the other payment provision of the Act.


Q Therapy functional infor-mation code (used for re-quired reporting purposes only).

These codes are supple-mental to other covered services and for informa-tional purposes only.

R Restricted Coverage. Special coverage instructions apply. If covered, the service is carrier priced. (NOTE: The majority of codes to which this indicator will be as-signed are the al-pha-numeric dental codes, which begin with “D.” We are assigning the indicator to a limited number of CPT codes which represent ser-vices that are covered only in unusual circumstances.)


042

T Injections. There are RVUs and payment amounts for these services, but they are only paid if there are no other services payable un-der the physician fee sched-ule billed on the same date by the same provider. If any other services payable un-der the physician fee sched-ule are billed on the same date by the same provider, these services are bundled into the physician services for which payment is made. (NOTE: This is a change from the previous definition, which states that injection services are bundled into any other services billed on the same date.) T = Paid as only service. These codes are paid only if there are no other services payable un-der the PFS billed on the same date by the same practitioner. If any other services payable under the PFS are billed on the same date by the same practi-tioner, these services are bundled into the service(s) for which payment is made.

The service may be a cov-ered service of the Official Alaska Workers’ Compensa-tion Medical Fee Schedule. For drugs and injections coded under the Healthcare Common Procedure Coding System (HCPCS) the pay-ment allowance limits for drugs is the lower of average sale price multiplied by 3.375 or billed charges. See HCPCS Level II section of these guidelines.

X Statutory Exclusion. These codes represent an item or service that is not in the statutory definition of “phy-sician services” for fee schedule payment purpos-es. No RVUs or payment amounts are shown for these codes, and no pay-ment may be made under the physician fee schedule. (Examples are ambulance services and clinical diag-nostic laboratory services.)

The service may be a cov-ered service of the Official Alaska Workers’ Compensa-tion Medical Fee Schedule. The maximum fee for this service is calculated as de-scribed in Fees for Medical Treatment or negotiated between the payer and provider. For ambulance services see HCPCS Level II section of this guideline.

Add-on Procedures The CPT book identifies procedures that are always performed in addition to the primary procedure and designates them with a + symbol. Add-on codes are never reported for stand-alone services but are reported secondarily in addition to the primary procedure. Specific language is used to identify add-on procedures such as “each additional” or “(List separately in addition to primary procedure).”

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The same physician or other health service worker that performed the primary service/procedure must perform the add-on service/procedure. Add-on codes describe additional intra-service work associated with the primary service/procedure (e.g., additional digit(s), lesion(s), neurorrhaphy(s), vertebral segment(s), tendon(s), joint(s)). Add-on codes are not subject to reduction and should be reimbursed at the lower of the billed charges or 100 percent of MAR. Do not append modifier 51 to a code identified as an add-on procedure. Designated add-on codes are identified in Appendix D of the CPT book. Please reference the CPT book for the most current list of add-on codes.

Add-on procedures that are performed bilaterally are reported as two line items, and modifier 50 is not appended. These codes are identified with CPT- specific language at the code or subsection level. Modifiers RT and LT may be appended as appropriate.

Exempt from Modifier 51 Codes The * symbol is used in the CPT book to identify codes that are exempt from the use of modifier 51, but have not been designated as CPT add-on procedures/services.

As the description implies, modifier 51 exempt procedures are not subject to multiple procedure rules and as such modifier 51 does not apply. Modifier 51 exempt codes are not subject to reduction and should be reimbursed at the lower of the billed charge or 100 percent of the MAR. Modifier 51 exempt services and procedures can be found in Appendix E of the CPT book.

Professional and Technical Components Where there is an identifiable professional and technical component, modifiers 26 and TC are identified in the RBRVS. The relative value units (RVUs) for the professional component is found on the line with modifier 26. The RVUs for the technical component is found on the RBRVS line with modifier TC. The total procedure RVUs (a combination of the professional and technical components) is found on the RBRVS line without a modifier.

Global Days This column in the RBRVS lists the follow-up days, sometimes referred to as the global period, of a service or procedure. In Alaska, it includes the day of the surgery through termination of the postoperative period.

Postoperative periods of 0, 10, and 90 days are designated in the RBRVS as 000, 010, and 090 respectively. Use the values in the RBRVS fee schedule for determining postoperative days. The following special circumstances are also listed in the postoperative period:

MMM Designates services furnished in uncomplicated maternity care. This includes antepartum, delivery, and postpartum care.

XXX Designates services where the global concept does not apply.

YYY Designates services where the payer must assign a follow-up period based on documentation submitted with the claim. Procedures designated as YYY include unlisted procedure codes.

ZZZ Designates services that are add-on procedures and as such have a global period that is determined by the primary procedure.

[H3] Telehealth Services

Telehealth services are a covered service and reimbursed atas the lower of the billed amount or MAR. Telehealth services are identified in CPT with a star [INSERT BLACK STAR ICON] icon and or in CPT

044

appendix P. TheIn addition, the Centers for Medicare and Medicaid Services (CMS) has a designated list of covered telehealth services. CPT and CMS guidelines will also be adopted in this fee schedule. Telehealth services should be performed using approved audio/visual methods where available. Telehealth services utilizing telephone only should be reported using the appropriate telephone codes (99441-–99443). TheseTelehealth services should be reported with modifier 95 appended.

Supplies and Materials Supplies and materials provided by the physician (e.g., sterile trays, supplies, drugs, etc.) over and above those usually included with the office visit may be charged separately.

Medical Reports A medical provider may not charge any fee for completing a medical report form required by the Workers’ Compensation Division. A medical provider may not charge a separate fee for medical reports that are required to substantiate the medical necessity of a service. CPT code 99080 is not to be used to complete required workers’ compensation insurance forms or to complete required documentation to substantiate medical necessity. CPT code 99080 is not to be used for signing affidavits or certifying medical records forms. CPT code 99080 is appropriate for billing only after receiving a request for a special report from the employer or payer.

In all cases of accepted compensable injury or illness, the injured worker is not liable for payment for any services for the injury or illness.

Off-label Use of Medical Services All medications, treatments, experimental procedures, devices, or other medical services should be medically necessary, having a reasonable expectation of cure or significant relief of a covered condition and supported by medical record documentation, and, where appropriate, should be provided consistent with the approval of the Food and Drug Administration (FDA). Off-label medical services must include submission of medical record documentation and comprehensive medical literature review including at least two reliable prospective, randomized, placebo-controlled, or double-blind trials. The Alaska Division of Workers’ Compensation (ADWC) will consider the quality of the submitted documents and determine medical necessity for off-label medical services.

Off-label use of medical services will be reviewed annually by the Alaska Workers' Compensation Medical Services Review Committee (MSRC).

Payment of Medical Bills Medical bills for treatment are due and payable within 30 days of receipt of the medical provider’s bill, or a completed medical report, as prescribed by the Board under Alaska Statute 23.30.097. Unless the treatment, prescription charges, and/or transportation expenses are disputed, the employer shall reimburse the employee for such expenses within 30 days after receipt of the bill, chart notes, and medical report, itemization of prescription numbers, and/or the dates of travel and transportation expenses for each date of travel. A provider of medical treatment or services may receive payment for medical treatment and services under this chapter only if the bill for services is received by the employer or appropriate payer within 180 days after the later of: (1) the date of service; or (2) the date that the provider knew of the claim and knew that the claim was related to employment.

A provider whose bill has been denied or reduced by the employer or appropriate payer may file an appeal with the Board within 60 days after receiving notice of the denial or reduction. A provider who fails to file an appeal of a denial or reduction of a bill within the 60-day period waives the right to contest the denial or reduction.

045

Scope of Practice Limits Fees for services performed outside a licensed medical provider’s scope of practice as defined by Alaska’s professional licensing laws and associated regulatory boards will not be reimbursable.

Board Forms All board bulletins and forms can be downloaded from the Alaska Workers’ Compensation Division website: www.labor.state.ak.us/wc.

MODIFIERS Modifiers augment CPT and HCPCS codes to more accurately describe the circumstances of services provided. When applicable, the circumstances should be identified by a modifier code appended in the appropriate field for electronic or paper submission of the billing.

A complete list of the applicable CPT modifiers is available in Appendix A of the CPT book.

Reimbursement Guidelines for CPT Modifiers Specific modifiers shall be reimbursed as follows:

Modifier 26—Reimbursement is calculated according to the RVU amount for the appropriate code and modifier 26.

Modifier 50—Reimbursement is the lower of the billed charge or 100 percent of the MAR for the procedure on the first side; reimbursement is the lower of the billed charge or 50 percent of the MAR for the procedure for the second side. If another procedure performed at the same operative session is higher valued, then both sides are reported with modifiers 51 and 50 and reimbursed at the lower of the billed charge or 50 percent of the MAR.

Modifier 51—Reimbursement is the lower of the billed charge or 100 percent of the MAR for the procedure with the highest relative value unit rendered during the same session as the primary procedure; reimbursement is the lower of the billed charge or 50 percent of the MAR for the procedure with the second highest relative value unit and all subsequent procedures during the same session as the primary procedure.

Consistent with the Centers for Medicare and Medicaid Services (CMS) guidelines, code-specific multiple procedure reduction guidelines apply to endoscopic procedures, and certain other procedures including radiology, diagnostic cardiology, diagnostic ophthalmology, and therapy services.

Modifiers 80, 81, and 82— Reimbursement is the lower of the billed charge or 20 percent of the MAR for the surgical procedure.

Applicable HCPCS Modifiers

Modifier TC—Technical Component Certain procedures are a combination of a physician component and a technical component. When the technical component is reported separately, the service may be identified by adding modifier TC to the usual procedure number.code. Reimbursement is the lower of the billed charge or 100 percent of the MAR for the procedure code with modifier TC.

046

Modifier QZ—CRNA without medical direction by a physician Reimbursement is the lower of the billed charge or 85 percent of the MAR for the anesthesia procedure. Modifier QZ shall be used when unsupervised anesthesia services are provided by a certified registered nurse anesthetist.

State-Specific Modifiers

Modifier AS—Physician Assistant or Nurse Practitioner Assistant at Surgery Services When assistant at surgery services are performed by a physician assistant or nurse practitioner, the service is reported by appending modifier AS.

Reimbursement is the lower of the billed charge or 15 percent of the MAR for the procedure. Modifier AS shall be used when a physician assistant or nurse practitioner acts as an assistant surgeon and bills as an assistant surgeon.

Modifier AS is applied before modifiers 50, 51, or other modifiers that reduce reimbursement for multiple procedures.

If two procedures are performed by the PA or NP, see the example below:

Procedure 1 (Modifier AS) $1,350.00

Procedure 2 (Modifier AS, 51) $1,100.00

Reimbursement $285.00 [($1,350.00 x .15) + ((1,100.00 x .15) x .50)]


Modifier PE—Physician Assistants and Advanced Practice Registered Nurses Physician assistant and advanced practice registered nurse services are identified by adding modifier PE to the usual procedure numbercode. A physician assistant must be properly certified and licensed by the State of Alaska and/or licensed or certified in the state where services are provided. An advanced practice registered nurse (APRN) must be properly certified and licensed by the State of Alaska and/or licensed or certified in the state where services are provided.

Reimbursement is the lower of the billed charge or 85 percent of the MAR for the procedure; modifier PE shall be used when services and procedures are provided by a physician assistant or an advanced practice registered nurse.

When a PA or advanced practice registered nurse (APRN) provides care to a patient, modifier PE is appended. If an APRN assists, a surgery modifier PE is added. Modifier PE is applied before modifiers 50, 51, or other modifiers that reduce reimbursement for multiple procedures.

If two procedures are performed by the PA or APRN, see the example below:

Procedure 1 (Modifier PE) $150.00

Procedure 2 (Modifier PE, 51) $130.00

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Reimbursement $182.75 [($150.00 x .85) + ((130.00 x .85) x .50)]


048

Evaluation and Management

GENERAL INFORMATION AND GUIDELINES This brief overview of the current guidelines should not be the provider’s or payer’s only experience with this section of the CPT® book. Carefully read the complete guidelines in the CPT book; much information is presented regarding aspects of a family history, the body areas and organ systems associated with examinations, and so forth.

The E/M code section is divided into subsections by type and place of service. Keep the following in mind when coding each service setting:

• A patient is considered an outpatient at a health care facility until formal inpatient admission occurs.

• All physicians use codes 99281–99285 for reporting emergency department services, regardless of hospital-based or non-hospital-based status.

• Consultation codes are linked to location.

Admission to a hospital or nursing facility includes evaluation and management services provided elsewhere (office or emergency department) by the admitting physician on the same day.

When exact text of the AMA 2019 2020 CPT® guidelines is used, the text is either in quotations or is preceded by a reference to the CPT book, CPT instructional notes, or CPT guidelines.

BILLING AND PAYMENT GUIDELINES

[H3] Telehealth Services Telehealth services are a covered service and reimbursed asat the lower of the billed amount or MAR. Telehealth services are identified in CPT with a star [INSERT BLACK STAR ICON] icon orand in CPT appendix P. TheIn addition, the Centers for Medicare and Medicaid Services (CMS) has a designated list of covered telehealth services. CPT and CMS guidelines will also be adopted in this fee schedule. Telehealth services should be performed using approved audio/visual methods where available. Telehealth services utilizing telephone only should be reported using the appropriate telephone codes (99441–-99443). TheseTelehealth services should be reported with modifier 95 appended.

New and Established Patient Service Several code subcategories in the Evaluation and Management (E/M) section are based on the patient’s status as being either new or established. CPT guidelines clarify this distinction by providing the following time references:

049

“A new patient is one who has not received any professional services from the physician/qualified health care professional or another physician/qualified health care professional of the exact same specialty and subspecialty who belongs to the same group practice, within the past three years.”

“An established patient is one who has received professional services from the physician/qualified health care professional, or another physician/qualified health care professional of the exact same specialty and subspecialty who belongs to the same group practice, within the past three years.”

The new versus established patient guidelines also clarify the situation in which one physician is on call or covering for another physician. In this instance, classify the patient encounter the same as if it were for the physician who is unavailable.

E/M Service Components The first three components (history, examination, and medical decision making) are the keys to selecting the correct level of E/M codes, and all three components must be addressed in the documentation. However, in established, subsequent, and followup categories, only two of the three must be met or exceeded for a given code. CPT guidelines define the following:

1. The history component is categorized by four levels:

Problem Focused — chief complaint; brief history of present illness or problem.

Expanded Problem Focused — chief complaint; brief history of present illness; problem-pertinent system review.

Detailed — chief complaint; extended history of present illness; problem-pertinent system review extended to indicate a review of a limited number of additional systems; pertinent past, family medical, and/or social history directly related to the patient’s problems.

Comprehensive — chief complaint; extended history of present illness; review of systems that is directly related to the problems identified in the history of the present illness plus a review of all additional body systems; complete past, family, and social history.

2. The physical exam component is similarly divided into four levels of complexity:

Problem Focused — an exam limited to the affected body area or organ system.

Expanded Problem Focused — a limited examination of the affected body area or organ system and of other symptomatic or related organ system(s).

Detailed — an extended examination of the affected body area(s) and other symptomatic or related organ system(s).

Comprehensive — A general multisystem examination or a complete examination of a single organ system.

The CPT book identifies the following body areas:

• Head, including the face

• Neck

• Chest, including breasts and axilla

• Abdomen

• Genitalia, groin, buttocks

• Back

• Each extremity

The CPT book identifies the following organ systems:

050

• Eyes

• Ears, Nose, Mouth, and Throat

• Cardiovascular

• Respiratory

• Gastrointestinal

• Genitourinary

• Musculoskeletal

• Skin

• Neurologic

• Psychiatric

• Hematologic/Lymphatic/Immunologic

3. Medical decision making is the final piece of the E/M coding process, and is somewhat more complicated to determine than are the history and exam components. Three subcomponents must be evaluated to determine the overall complexity level of the medical decision.

a. The number of possible diagnoses and/or the number of management options to be considered.

b. The amount and/or complexity of medical records, diagnostic tests, and other information that must be obtained, reviewed, and analyzed.

c. The risk of significant complications, morbidity, and/or mortality, as well as comorbidities associated with the patient’s presenting problems, the diagnostic procedures, and/or the possible management options.

Contributory Components Counseling, coordination of care, and the nature of the presenting problem are not major considerations in most encounters, so they generally provide contributory information to the code selection process. The exception arises when counseling or coordination of care dominates the encounter (more than 50 percent of the time spent). In these cases, time determines the proper code. Document the exact amount of time spent to substantiate the selected code. Also, set forth clearly what was discussed during the encounter. If a physician coordinates care with an interdisciplinary team of physicians or health professionals/agencies without a patient encounter, report it as a case management service.

Counseling is defined in the CPT book as a discussion with a patient and/or family concerning one or more of the following areas:

• Diagnostic results, impressions, and/or recommended diagnostic studies

• Prognosis

• Risks and benefits of management (treatment) options

• Instructions for management (treatment) and/or follow-up

• Importance of compliance with chosen management (treatment) options

• Risk factor reduction

• Patient and family education

E/M codes are designed to report actual work performed, not time spent. But when counseling or coordination of care dominates the encounter, time overrides the other factors and determines the proper code. Per CPT guidelines for office encounters, count only the time spent face-to-face with the patient and/or family; for hospital or other inpatient encounters, count the time spent in the patient’s unit or on the patient’s floor. The

051

time assigned to each code is an average and varies by physician. Note: Time is not a factor when reporting emergency room visits (99281–99285) like it is with other E/M services.

According to the CPT book, “a presenting problem is a disease, condition, illness, injury, symptom, sign, finding, complaint, or other reason” for the patient encounter. The CPT book defines five types of presenting problems. These definitions should be reviewed frequently, but remember, this information merely contributes to code selection—the presenting problem is not a key factor. For a complete explanation of evaluation and management services refer to the CPT book.

[H3] 2021 Changes to E/M Coding as Proposed by CPT

At the time of adoption of this fee schedule, the American Medical Association (AMA) stated that the following

changes would be made to CPT E/M codes for 2021. Please refer to your 2021 CPT for final changes.

[H4] Codes 99202-99215

Beginning within 2021, the office or other outpatient services codes 99202-–99215 will have revised language and code 99201 is deleted. Code selection will be based on time or medical decision making (MDM). The time element must still be documented with the content of the patient discussion. Note that and the time required for each visit has been revised. Time for 99202-–99215 will include non-face-to-face time such as chart review including test results and charting. Medical decision making (MDM) has been revised with a new MDM table which. The MDM table is similar to the Table of Risk but is specific to medical decision making for codes 99202-–99215. History and exam are not required elements but should be performed and documented as appropriate to the patient encounter. Many of the terms specific to E/M services and specifically MDM have been defined. Additional information is available in the 2021 CPT or the AMA web site https://www.ama-assn.org/practice-management/cpt/cpt-evaluation-and-management

[H4] Other E/M Codes

The changes described for CPT codes 99202-–99215 are not applicable to the other E/M services. History, exam, and MDM are the key elements and should be documented. The Table of Risk is one element to determining the level of MDM for E/M codes other than 99202-–99215, but the. The new MDM table is not referenced. When time is utilized to select a level of E/M (for codes other than 99202–99215), only the face-to-face time is considered, and the counseling coordination of care must be documented.

Subcategories of Evaluation and Management The E/M section is broken down into subcategories by type of service. The following is an overview of these codes.

Office or Other Outpatient Services (9920199202–99215) Use the Office or Other Outpatient Services codes to report the services for most patient encounters. Multiple office or outpatient visits provided on the same calendar date are billable if medically necessary. Support the claim with documentation. The description and requirements for office and other outpatient services are revised beginning in 2021. See abovethe section 2021 Changes to E/M Coding as Proposed by CPT for more details.

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https://www.ama-assn.org/practice-management/cpt/cpt-evaluation-and-management

Hospital Observation Services (992178–99220, 99224-–99226) CPT codes 99217 99218 through 99220 and 99224 through 99226 report E/M services provided to patients designated or admitted as “observation status” in a hospital. It is not necessary that the patient be located in an observation area designated by the hospital to use these codes; however, whenever a patient is placed in a separately designated observation area of the hospital or emergency department, these codes should be used.

The CPT instructional notes for Initial Hospital Observation Care include the following instructions:

• Use these codes to report the encounter(s) by the supervising physician or other qualified health care professional when the patient is designated as outpatient hospital “observation status.”

• These codes include initiation of observation status, supervision of the health care plan for observation, and performance of periodic reassessments. To report observation encounters by other physicians, see Office or Other Outpatient Consultation codes (99241–99245) or subsequent Subsequent observation Observation care Care (99224–99226).

When a patient is admitted to observation status in the course of an encounter in another site of service (e.g., hospital emergency department, physician’s office, nursing facility), all E/M services provided by that physician on the same day are included in the admission for hospital observation. Only one physician can report initial observation services. Do not use these observation codes for postrecovery of a procedure that is considered a global surgical service.

Observation services are included in the inpatient admission service when provided on the same date. Use Initial Hospital Care codes for services provided to a patient who, after receiving observation services, is admitted to the hospital on the same date—the observation service is not reported separately.

Observation Care Discharge Services (99217) This code reports observation care discharge services. Use this code only if discharge from observation status occurs on a date other than the initial date of observation status. The code includes final examination of the patient, discussion of the hospital stay, instructions for continuing care, and preparation of discharge records. If a patient is admitted to, and subsequently discharged from, observation status on the same date, see codes 99234–99236.

Hospital Inpatient Services (99221–99223, 99231-–99239) The codes for hospital inpatient services report admission to a hospital setting, follow-up care provided in a hospital setting, and hospital discharge-day management. Per CPT guidelines for inpatient care, the time component includes not only face-to-face time with the patient but also the physician’s time spent in the patient’s unit or on the patient’s floor. This time may include family counseling or discussing the patient’s condition with the family; establishing and reviewing the patient’s record; documenting within the chart; and communicating with other health care professionals such as other physicians, nursing staff, respiratory therapists, and so on.

If the patient is admitted to a facility on the same day as any related outpatient encounter (office, emergency department, nursing facility, etc.), report the total care as one service with the appropriate Initial Hospital Care code.

Codes 99238 and 99239 report hospital discharge day management, but excludes discharge of a patient from observation status (see 99217). When concurrent care is provided on the day of discharge by a physician other than the attending physician, report these services using Subsequent Hospital Care codes.

Not more thanOnly one hospital visit per day shall be payable except when documentation describes the medical necessity of more than one visit by a particular provider. Hospital visit codes shall be combined into the single code that best describes the service rendered where appropriate.

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Consultations (99241–99255) Consultations in the CPT book fall under two subcategories: Office or Other Outpatient Consultations and Initial Inpatient Consultations. For Follow-up Inpatient Consultations, see Subsequent Hospital Care codes 99231–99233 and Subsequent Nursing Facility Care codes 99307–99310. A confirmatory consultation requested by the patient and/or family is not reported with consultation codes but should instead be reported using the appropriate office visit codes (9920199202–99215). A confirmatory consultation requested by the attending physician, the employer, an attorney, or other appropriate source should be reported using the consultation code for the appropriate site of service (Office/Other Outpatient Consultations 99241–99245 or Initial Inpatient Consultations 99251–99255). If counseling dominates the encounter, time determines the correct code in both subcategories. The general rules and requirements of a consultation are defined by the CPT book as follows:

• A consultation is a “a type of evaluation and management service provided at the request of another physician or appropriate source to either recommend care for a specific condition or problem or to determine whether to accept responsibility for ongoing management of the patient’s entire care or for the care of a specific condition or problem.”

• Most requests for consultation come from an attending physician or other appropriate source, and the necessity for this service must be documented in the patient’s record. Include the name of the requesting physician on the claim form or electronic billing. Confirmatory consultations may be requested by the patient and/or family or may result from a second (or third) opinion. A confirmatory consultation requested by the patient and/or family is not reported with consultation codes but should instead be reported using the appropriate office visit codes (9920199202–99215). A confirmatory consultation requested by the attending physician, the employer, an attorney, or other appropriate source should be reported using the consultation code for the appropriate site of service (Office/Other Outpatient Consultations 99241–99245 or Initial Inpatient Consultations 99251–99255). If counseling dominates the encounter, time determines the correct code in both consultation subcategories.

• The consultant may initiate diagnostic and/or therapeutic services, such as writing orders or prescriptions and initiating treatment plans.

• The opinion rendered and services ordered or performed must be documented in the patient’s medical record and a report of this information communicated to the requesting entity.

• Report separately any identifiable procedure or service performed on, or subsequent to, the date of the initial consultation.

• When the consultant assumes responsibility for the management of any or all of the patient’s care subsequent to the consultation encounter, consultation codes are no longer appropriate. Depending on the location, identify the correct subsequent or established patient codes.

Emergency Department Services (99281–99288) Emergency department (ED) service codes do not differentiate between new and established patients and are used by hospital-based and non-hospital-based physicians. The CPT guidelines clearly define an emergency department as “an organized hospital-based facility for the provision of unscheduled episodic services to patients who present for immediate medical attention. The facility must be available 24 hours a day.” Care provided in the ED setting for convenience should not be coded as an ED service. Also note that more than one ED service can be reported per calendar day if medically necessary.

Critical Care Services (99291–99292) The CPT book clarifies critical services providing additional detail about these services. Critical care is defined as “the direct delivery by a physician(s) or other qualified health care professional of medical care for a critically ill or injured patient. A critical illness or injury acutely impairs one or more vital organ systems such that there is a high probability of imminent or life- threatening

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